The document includes an overview of PSD2 and Strong Customer Authentication; definition of how it will impact business travel; an explanation of what type of transactions are in scope (such as online vs offline); which payment methods (physical cards, lodge accounts, virtual payments) require SCA; what exemptions are available; the implications for buyers’ travel programmes; questions buyers need to ask their TMC, OBT and card issuer; and the best way to educate bookers and travellers on the relevant impacts.
It is the result of extensive collaboration between members of ITM’s PSD2 Taskforce which was established in February 2021 and consists of 18 representatives from card payment providers, TMCs, OBT, GDS suppliers, legal advisers and travel buyers. This includes Amadeus, American Express, Airplus International, Barclaycard Payments, Amex GBT, BCD Travel, CWT, SAP Concur, Travlaw, and members of ITM’s Industry Affairs Committee.
The taskforce has held several meetings to share insight and reach common understanding of SCA implications for business travel transactions, as well as identify actionable steps buyers can take to prepare their travellers and bookers. ITM also hosted two webinars during which a panel of experts clarified SCA requirements, shared insight into exemptions and answered questions raised by ITM’s buyer community.
PSD2 Taskforce stakeholders will continue to engage in further dialogue during Q4 2021, in particular to monitor further updates on the implementation of secure corporate exemption.
Scott Davies, CEO, ITM commented: “Our PSD2 Taskforce has made huge progress over the last five months, opening up dialogue and collaboration between all the relevant stakeholders and helping our members and the industry eco-system start to make sense of SCA. The ‘Preparing for PSD2’ guidance is a big step towards giving buyers the resources and knowledge they need to minimise any disruption from SCA to their travellers, bookers and programmes.
“Although enforcement of SCA under the EU directive has been delayed until March 2022, issuers will begin to test and introduce authentication requests between now and then. Our advice for buyers is to begin the process, of evaluating the impact of SCA on their individual travel programmes, engage with the relevant stakeholders and build an action and communication plan,” he said.
“I would like to thank the taskforce members for their considerable time, expertise and input to working group discussions, webinars and the content for this new resource. Their work continues, however, as clarification is still needed from UK Finance as to the relevance of some exemptions, particularly secure corporate exemption,” Davies explained.
